The West African Gas Pipeline Company said on Tuesday it had suspended the flow of gas from Nigeria to Ghana over unpaid bills by the Ghanaian government.
Ghana’s state power producer, Volta River Authority, owes Nigeria’s N-Gas around $180m, while N-Gas in turn owes the pipeline company $104m, WAGPCo spokeswoman, Harriet Wereko-Brobby.
N-Gas, a Nigerian gas company, is the main supplier of gas to Ghana’s Volta River Authority through the West African Gas Pipeline.
N-Gas buys gas from oil companies in Nigeria and transports the commodity to its customers in Benin, Togo and Ghana through the $1bn WAGP, which is operated by the West African Gas Pipeline Company.
N-Gas had last year said it would cut gas supply by 70 per cent to Ghana’s main power generation company due to unpaid debts of $181m.
Ghana has a deal with Nigeria to receive a contractual 120 million standard cubic feet of gas daily.
The country gets about 25 per cent of its power supply through gas from Nigeria, which flows through the pipeline via Benin and Togo.